- Author:
- Wright, Arnold
- Publication Info:
-
London:
Lloyd's Greater Britain Pub. Co.,
1908,
pg 117
Text on page 117
64 TWENTIETH CENTIJRV IMPRESSIONS OF SIAM
117
Indian Government. For its attainment, however, it is essential that for a long series of years after the introduction of the Gold Exchange Standard the requirements of trade shall be such that a steady demand is made on the Treasury for considerable supplies of the artificially raised currency. In such circumstances it may be possible (and in the case of the Indian currency it has been so) to accumulate a sufficient reserve out of the profits of the coinage to support the currency when, owing to adverse trade conditions, its volume is greater than the requirements of trade demand.
In cases where circumstances do not permit of this easy and inexpensive method of creating the required reserve, it becomes necessary, when the demand for gold arises, owing to an unfavourable trade position, to provide it by loan or otherwise, and this is what Siam has had to do. At the beginning of 1907 a loan of A3,000,000 was raised in Europe, of which one third was set aside for exchange purposesathe balance being destined for railway construction. With this Ai,ooo,oco the Government has met the situation created by the trade depression of the years 1907 and 1908 by selling sterling transfers, and has thus been enabled to maintain the exchange value of the tical. A large quantity of redundant currency has thus been withdrawn from circulation, and when this is released again in conformity with the demands of trade, as it is certain to be in due course, the gold reserve of the Government will once again be replenished. Later on, when the coinage of new ticals is undertaken to meet yet further demands for currency, the profits arising from this coinage will go to swell the reserve, and eventually it is hoped that, when these accumulated profits amount to a sufficient figure, it may be possible to repay, out of them, the A1,000,000 of loan money with which the reserve has been started.
The above is a brief general statement of the recent currency policy of the Government and its present situation, but a further development may shortly be expected in the direction of the introduction of a gold coin, of the value of 10 ticals, and of full legal tender. In the latter respect, the new coin will circulate on an equal footing with the silver tical, which will at first, and probably for many years to come, remain unlimited legal tender. It is expected, however, that as time goes on the metallic currency will bear an increasingly large proportion of gold, and this tendency will undoubtedly give stability to the monetary position of the country.
a. H. B a klow (Agent, Hongkong and Shanghai Banking Corporation, Ltd.). P. Schwarze (Manager, The Siam Commercial Bank, Ltd.).
W. S. Livingstone (Agent, Chartered Bank of India, Australia, and China, Ltd.).
Camille Henry (Manager, Banque de l'Indo-Chine).
Coinage.
Under the new law, which will shortly be promulgated, the following will be the coins to be minted :a
Gold.a10-tical piece, of 6*20 grammes wTeight and 900 fine.
Silver.aTicaly of 15 grammes weight and 900 fine.
2-salung piece, or J tical, of 7*5 grammes weight and 800 fine.
Sailing, or J tical, of 375 grammes weight and 800 fine.
Nickel.a10-stang piece or T\y tical.
5-stang piece, or ^ tical.
Copper.ai-stan* piece or tical.
The present subsidiary currency of Siam is based on the att, or -fa tical, but the att and its connections are to be recalled as soon as the new coins are put into circulation. The change to a decimal system of coinage wTill undoubtedly simplify all business transactions, and will put the Siamese currency on a modern and up-to-date footing.
Paper Currency.
The paper currency of Siam consists of a Government issue of notes of the 1,000, 100, 20,
H *
THE SIAM COMMERCIAL BANK.
(See p. 120.)(See p. 120.)
